Market Brief Pound Surges Now Up 600 Pips in Less Than a Week
See a summary of the top market themes and trends from today's US trading session!
Share this:
- Bloomberg reported that EU and UK negotiators were “closing in on” a draft Brexit deal, centered around a customs border in the Irish Sea pending DUP support; the party has been skeptical toward the proposal to say the least and even if a deal is agreed, Brexit would likely have to be delayed to year-end.
- FX: The pound was once again the strongest major currency, gaining at least 1% against each of its major rivals. The safe have Japanese yen was the day’s weakest major currency.
- The IMF cut its global growth forecast to 3.0% (from 3.2% in July), with the ongoing trade war potentially shaving as much as 2.0% off China’s GDP growth and 0.6% off the US’ in the short term.
- Commodities: Oil and gold both tacked about -1% lower on the day.
- US indices closed roughly 1% higher, bolstered by bank earnings and Brexit optimism.
- Health Care (XLV) was the strongest sector on the day while Consumer Staples (XLP) brought up the rear.
- Stocks on the move:
- JP Morgan (JPM, +3%) was the standout among the banks reporting earnings today, though all four ultimately closed higher on the day – see our full recap here.
- UnitedHealth (UNH) tacked on over 8% after reporting stronger-than-expected earnings.
- Johnson and Johnson (JNJ) rallied nearly 2% on a solid earnings report.
- Multiple reports suggested that General Motors (GM, +2%) was close to a deal with striking employees.
- Bloomberg reported that EU and UK negotiators were “closing in on” a draft Brexit deal, centered around a customs border in the Irish Sea pending DUP support; the party has been skeptical toward the proposal to say the least and even if a deal is agreed, Brexit would likely have to be delayed to year-end.
- FX: The pound was once again the strongest major currency, gaining at least 1% against each of its major rivals. The safe have Japanese yen was the day’s weakest major currency.
- The IMF cut its global growth forecast to 3.0% (from 3.2% in July), with the ongoing trade war potentially shaving as much as 2.0% off China’s GDP growth and 0.6% off the US’ in the short term.
- Commodities: Oil and gold both tacked about -1% lower on the day.
- US indices closed roughly 1% higher, bolstered by bank earnings and Brexit optimism.
- Health Care (XLV) was the strongest sector on the day while Consumer Staples (XLP) brought up the rear.
- Stocks on the move:
- JP Morgan (JPM, +3%) was the standout among the banks reporting earnings today, though all four ultimately closed higher on the day.
- UnitedHealth (UNH) tacked on over 8% after reporting stronger-than-expected earnings.
- Johnson and Johnson (JNJ) rallied nearly 2% on a solid earnings report.
- Multiple reports suggested that General Motors (GM, +2%) was close to a deal with striking employees.
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/CAD shooting star puts September surge on notice
USD/CAD has printed a clear bearish reversal pattern after an extraordinary September surge, but confirmation may depend heavily on how US Treasury yields react to Friday’s payrolls report.
USD/CHF Reverses as Swiss Franc Surges amid Bond Carnage
USD/CHF reverses from channel resistance as bond volatility surges and broad Swiss franc strength points to a possible carry-trade unwind.
USD/MXN Analysis: Is Super Peso Starting to Fade?
Over recent trading sessions, the Mexican peso has continued to show signs of weakness against the U.S. dollar. This can already be seen in USD/MXN, which has gained more than 1.7% over the last three sessions, highlighting sustained buying pressure in favor of the dollar in the short term.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.